Building foundational capabilities for the digitalisation of manufacturing in Africa and Latin America

Fernando Santiago, Andrea Heredia Zurita and Ruth Pollak

Chapter 4 in Building Digital Technological Capabilities, 2025, pp 97-121 from Edward Elgar Publishing

Abstract: In this chapter, we apply a framework of macro-level cumulative foundational capabilities that help to explain the readiness for the digitalisation of manufacturing in Africa and Latin America. The presence of these capabilities at the country level is analysed based on three criteria: a country's positioning within the region, its performance relative to the average of its respective income group, and progress made across capability dimensions over the period 2015–21. The findings reveal a heterogeneous picture across the two regions. Despite progress in specific capability dimensions, considerable shortcomings remain, particularly in innovation performance. Analysis per capability dimension renders information about individual countries’ performance within each region, allowing us to identify strengths, challenges, and recent trajectories in each such dimension. By shedding light on capability gaps, we expect to inform policy interventions geared to address those gaps, thereby enabling progress towards the structural transformation required for the digitalisation of manufacturing in Africa and Latin America.

Keywords: Digitalization of manufacturing; Capabilities; Readiness; Africa; Latin America (search for similar items in EconPapers)
Date: 2025
ISBN: 9781803922355
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